Bloomberg Analyst Mike McGlone ‘Very Bullish’ on Bitcoin Amid 90% BTC Rally This Year – But There’s a Catch
Senior Bloomberg commodities analyst Mike McGlone says Bitcoin’s (BTC) long-term outlook looks promising.
In a new Stansberry Research interview, McGlone says he’s “very bullish” on Bitcoin, but warns that risk assets like the flagship crypto asset face significant headwinds ahead.
“I am very bullish on Bitcoin because of key reasons – it is definably diminishing supply very low and [it’s] early days of adoption, you need to be long over time.
But it’s also trading 24/7, and it’s a very important leading indicator, and it looks like it might just have rolled over from $30,000. I just don’t see how we’re going to get what I see as a significant decline in the prices of risk assets without Bitcoin, still a risk asset, going down.”
According to the Bloomberg analyst, Bitcoin’s recent price gains can “absolutely” be attributed to a “bear market rally.” McGlone says that when other correlated assets begin to decline in value in the event of a recession, Bitcoin will follow suit.
“I’m afraid what’s happening with Bitcoin is that people are looking at it as if the banking crisis has helped – it will go that way and trade more like gold and long bonds. But I think it’s more about everything being up this year and Bitcoin is the fastest horse in the race. It was the fastest going down, the fastest up this year…
Bitcoin is up nearly 80% on the year and that may just be starting to roll over. It is traded 24/7, it is clearly a leading indicator.
I see Bitcoin as if the markets fall, which I expect… for example the S&P 500, I expect to fall for a normal recession probably another 25%, Bitcoin should probably be the first to lead that because it’s still a risk asset. “
Bitcoin is trading at $28,880 at the time of writing. The flagship crypto asset opened the year at around $16,500 and rallied nearly 90% to a 2023 high of $31,000 reached earlier this month.
McGlone says that in the long term, Bitcoin will act as a safe haven.
“I think long-term, that’s it [Bitcoin] going to come out ahead and trade more like gold and long bonds as a risk-off asset. But it’s still a very risky asset.”
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